Correlation Between Omega Healthcare and Banco Bradesco
Can any of the company-specific risk be diversified away by investing in both Omega Healthcare and Banco Bradesco at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Omega Healthcare and Banco Bradesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Omega Healthcare Investors, and Banco Bradesco SA, you can compare the effects of market volatilities on Omega Healthcare and Banco Bradesco and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Omega Healthcare with a short position of Banco Bradesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omega Healthcare and Banco Bradesco.
Diversification Opportunities for Omega Healthcare and Banco Bradesco
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Omega and Banco is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Omega Healthcare Investors, and Banco Bradesco SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Bradesco SA and Omega Healthcare is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Omega Healthcare Investors, are associated (or correlated) with Banco Bradesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Bradesco SA has no effect on the direction of Omega Healthcare i.e., Omega Healthcare and Banco Bradesco go up and down completely randomly.
Pair Corralation between Omega Healthcare and Banco Bradesco
Assuming the 90 days trading horizon Omega Healthcare is expected to generate 1.88 times less return on investment than Banco Bradesco. In addition to that, Omega Healthcare is 1.15 times more volatile than Banco Bradesco SA. It trades about 0.07 of its total potential returns per unit of risk. Banco Bradesco SA is currently generating about 0.16 per unit of volatility. If you would invest 1,680 in Banco Bradesco SA on September 6, 2025 and sell it today you would earn a total of 247.00 from holding Banco Bradesco SA or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Omega Healthcare Investors, vs. Banco Bradesco SA
Performance |
| Timeline |
| Omega Healthcare Inv |
Risk-Adjusted Performance
Mild
Weak | Strong |
| Banco Bradesco SA |
Omega Healthcare and Banco Bradesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Omega Healthcare and Banco Bradesco
The main advantage of trading using opposite Omega Healthcare and Banco Bradesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omega Healthcare position performs unexpectedly, Banco Bradesco can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Banco Bradesco will offset losses from the drop in Banco Bradesco's long position.| Omega Healthcare vs. Taiwan Semiconductor Manufacturing | Omega Healthcare vs. Apple Inc | Omega Healthcare vs. Alibaba Group Holding | Omega Healthcare vs. Microsoft |
| Banco Bradesco vs. Hormel Foods | Banco Bradesco vs. Rbr Top Offices | Banco Bradesco vs. Check Point Software | Banco Bradesco vs. Eastman Chemical |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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